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Entering Prior Payroll when setting up QuickBooks

I am getting payroll set up for my client and entered in the prior payroll checks.  However, QuickBooks is calculating payroll different than the payroll report received from the CPA firm. 

 

This is basically calculating Overtime and there aren't enough decimal places so I am off by a few cents.

How can I adjust the balances to reflect what was actually paid rather than what QuickBooks is calculating?

Best answer 05-17-2019 12:13 AM

Accepted Solutions
QuickBooks Team

Re: Entering Prior Payroll when setting up QuickBooks

Yes, QuickBooks Online only allows 2 decimal places when creating transactions, Arthur.

 

For now, you can manually enter the amount when you create the payroll. Your idea of creating a dummy rate (new payroll item) would work, too. You can use this article for reference: Create a Non-taxable Reimbursement payroll item.

 

I'll pass your feedback about adding decimal places to our Product Development Team. They'll evaluate this idea and put it into consideration for future product updates.

 

Feel free to let us know if you have other concerns.

3 Comments
QuickBooks Team

Re: Entering Prior Payroll when setting up QuickBooks

Hi there Arthur_500,

 

You can create a liability adjustment to correct the employee's year-to-date (YTD) information. I'll show you how it's done.

  1. Click Employees, and then click Payroll Taxes and Liabilities.
  2. Click Adjust Payroll Liabilities.
  3. Enter the paycheck date in the Date and Effective Date.
  4. Adjustment is for: Employee. Then, choose the employee's name.
  5. Under Item Name column, select the overtime item and enter the cents in the Amount column.
  6. Click Accounts Affected to select how you'd like this adjustment affects your accounts and reports.
  7. Click OK.

You can read this article for more details: Adjust payroll liabilities.

 

This article will also help you for future reference: Correct year-to-date (YTD) additions or deductions on a paycheck when the wrong tracking type was us....

 

Feel free to leave a comment anytime if you have questions. We're always here to help.

Experienced Member

Re: Entering Prior Payroll when setting up QuickBooks

Adjusting the liabilities is easy.  My problem is that the Gross Payroll is incorrect.

 

Leet's say I have an employee earning $16.75 per hour.  For every time and a half overtime hour they are paid $21.125.  However, QuickBooks only allows 2 decimal places.  An  with 3.8 hours of overtime will have $0.02 difference between a calculated amount utilizing decimal places and the QuickBooks two-decimal place limitation.  As a result my gross payroll does not match up.

Should I set up a 'dummy' rate and pay or deduct from an employee the difference between the calculated amount and the actual payroll?  Since these checks were from the first five months of the year the employee will never see them. They are only for historical purposes to make the tax reporting correct going forward.

 

 

 

 

 

QuickBooks Team

Re: Entering Prior Payroll when setting up QuickBooks

Yes, QuickBooks Online only allows 2 decimal places when creating transactions, Arthur.

 

For now, you can manually enter the amount when you create the payroll. Your idea of creating a dummy rate (new payroll item) would work, too. You can use this article for reference: Create a Non-taxable Reimbursement payroll item.

 

I'll pass your feedback about adding decimal places to our Product Development Team. They'll evaluate this idea and put it into consideration for future product updates.

 

Feel free to let us know if you have other concerns.